Income Generation Series: Service-Based Business Models

Overview

Service-based business models are based on exchanging time and expertise for money. Whenever someone is providing labor in exchanging for money, they are providing a service. There are many service based opportunities such as graphic design, web design, SEO outsourcing, or consulting.

There are some distinct disadvantages to developing a service-based model.  These models are very difficult to outsource, and even outsourcing can require a large management commitment.  They are generally not very conducive to generating passive income, since they typically bill clients based on time expended.  Additionally effort must be expended to build a client base, which takes time and money.

Given these disadvantages, a service-based business model does not integrate well into the business plan.  Some opportunities may exist in outsourcing.  Although, it would be critical to focus on consistent repeatable processes.  Given that I am proposing to use third-world labor, the processes need to be specifically defined and simple to execute.  Some opportunities may exist in developing cookie-cutter websites or link building programs.  The risk would be that these activities could take my workforce away from focusing on what is really important.

Analysis

Recommendation

The service-based business model does not provide significant opportunities for my business plan.  Opportunities may be considered to alleviate specific problems, such as idle workforce or the need to raise capital.  However, these opportunities will be considered low priorities, and will only be utilized when necessary.

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Income Generation Series: Overview
Income Generation Series: Partial E-Commerce Websites
Income Generation Series: Website Acquisitions
Income Generation Series: PPC Campaigns
Income Generation Series: Affiliate Marketing

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